Partners Group tweaks down outlook as franc hurts

ZURICH, April 10 (Reuters) - Swiss asset manager Partners Group (PGHN.S) on Thursday slightly reduced its outlook for asset growth for the full year, saying its business was hurt by the strong franc and client redemptions.

The private equity and hedge fund investor said it expected assets under management to reach 28 billion to 29 billion Swiss francs ($28.14 billion-$29.14 billion) this year.

It sounded slightly more cautious than its earlier view that assets would be "in reach" of 30 billion francs.

"Net asset growth is expected to be moderated by currency effects, particularly the strengthening of the Swiss franc ... as well as by anticipated redemptions," the company said.

The group's shares were down 3.6 percent at 142 francs at 1254 GMT, underperforming a 2.5 percent drop in the DJ Stoxx banking index .SX7P.

"The impact on the profit-and-loss account in 2008 should be limited," Landsbanki Kepler said in a note.

"We maintain our 'Buy' rating and lower our target price by 5.4 percent from 185 francs to 175 francs."

Partners Group also said it had closed its PG Global Mezzanine fund at 447 million euros ($708.3 million), above the 300 million euro target, saying the terms and conditions of mezzanine tranches had improved "significantly".

"The increase in interest margins and the re-emergence of covenants in connection with a marked decrease in leverage, result in a measurable reduction in transaction risk," the company said in a statement.

Partners Group had already committed more than 50 percent of the capital in the fund, with 11 transactions alone since the beginning of the year. (Reporting by Douwe Miedema, editing by Will Waterman)